Sharechat Logo

GPG to underwrite Tower issue

Friday 4th July 2003

Text too small?
Tower has confirmed it will be proceeding with a 4 for 3 pro rata renounceable rights issue. The issue price will be 90c per share. The record date will be 11 July 2003 and rights will commence trading on the NZX and ASX on July 14.

The rights issue will raise $210.8 million capital for the company.

The offer documents and letters confirming the entitlements of shareholders are expected to be dispatched on July 15.

The rights issue will be fully underwritten by Guinness Peat Group plc (GPG) with a broad panel of substantial sub-underwriters. GPG may retain not more than 15.6 million shares allotted under the underwriting arrangements.

This would result in GPG moving to a shareholding in Tower of not more than 13.75% as a result of shares allotted under the underwriting arrangement.

The underwriting fee is 2.5% of the full issue ($5.3m). A management fee of 0.5% ($1.1m) will be payable. The organising broker will be JB Were.

The board had available to it two alternative proposals to underwrite the rights issue. The board is of the opinion that the GPG underwriting proposal represented the best option for the company.

Father's Day SOON! Crazy Deals on ALL IRG Yearbooks - More than 50% OFF - $19.99 for 44th IRG Yearbook 2018-2019


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Tower to return 'initial' $70M of capital from sale of life business
Tower shares fall to 2-month low as licensing requirements may weigh on capital returns
Tower's licensing talks with RBNZ may push up minimum solvency requirements
Tower names Hancock as new chief executive, replacing Flannagan
Tower posts first-half profit as asset sales reap gains of $51.4 mln
Fidelity Life acquires most of Tower's life insurance business
Flannagan to leave Tower after strategic review, asset sales
Tower FY profit jumps 67%, to return $120M to shareholders; shares jump
Tower sells medical insurance unit to nib for $102M
Stiassny joins Tower board as questions linger over strategy